Investors seem to be bullish on Gabion Technologies India, the New Delhi-based steel gabions, rockfall protection nettings, and geosynthetic materials manufacturer, as its Initial Public Offering (IPO) closed with a massive 768.13 times subscription on January 8, the final day of bidding.
Thanks to across categories of investors who bid 197.99 crore equity shares (which are worth Rs 16,037 crore) against the offer size of 25.77 lakh shares via 3.98 lakh applications during January 6-8.
The portion set aside for non-institutional investors was subscribed 1,085.88 times and that of retail investors 867.23 times, while the reserved part of qualified institutional buyers was booked 271.13 times.
The subscription demand also seems to have reflected in grey market premium which was nearly 40 percent at the time of writing this article, increasing from 37 percent premium, the market observers said.
The IPO share allotment will be finalised by January 9, while its shares will be available for trading on the BSE SME effective January 13.
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Gabion Technologies that manufactures steel wire mesh gabions and provides services and technology in geo-systems, geotechnical engineering and ground improvement techniques fields approached capital markets to raise Rs 29.16 crore via IPO of 36 lakh shares at the upper end of price of Rs 76-81 per share.
The company will utilise IPO proceeds mainly for its working capital requirements and purchasing plant and machinery, and the remaining funds for general corporate purposes.
With manufacturing unit at Paonta Sahib, Himachal Pradesh, Gabion Technologies has independently completed 76 work contracts worth Rs 127.6 crore in road, railway, energy, mining, defence and airport sectors. Its current work order book stood at Rs 172.47 crore.
GYR Capital Advisors acted as the book running lead manager for the Gabion Technologies IPO.
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